More than six years ago, the federal government changed the rules for taxing funds. This year, the issue is stirring again because many investors in ETFs and funds have had to pay significant taxes upfront for the first time – despite not selling any shares at a profit. The so-called upfront flat rate can lead to an annual tax on popular ETFs or accumulation funds. These funds do not distribute dividends to investors, but reinvest them automatically.
Advance taxes are calculated using the Bundesbank base interest rate. Given that this value will be significantly above zero again in 2023, for the first time in several years, many investors will only be faced with early taxation of their funds and ETFs in 2024 – years after the reform. We explain the special rules so that you understand the statements made by the broker, fund administrator or bank and in the end pay only the taxes that the tax authorities are really entitled to.
Select the offer and continue reading